16th Dec 2019 11:34
(Alliance News) - Sports Direct International PLC said its shareholders have approved a name change to Frasers Group PLC at its general meeting on Monday.
The FTSE 250-listed firm said the change of name will be effective as soon as Companies House has issued a certificate of incorporation on change of name, which is expected "later" on Monday.
"The change of name will not affect any rights of shareholders and existing share certificates should be retained as they will remain valid and no new share certificates will be issued," Sports Direct said in its general meeting results statement.
Early on Monday, Sports Direct said its earnings increased in the first half of its current financial year despite a "very tough and challenging" retail environment.
The sportswear retailer said pretax profit in the 26 weeks to October 27 grew 21% to GBP90.2 million from GBP74.4 million reported a year earlier, as revenue rose by 14% to GBP2.04 billion from GBP1.79 billion.
Sports Direct said its revenue growth was largely boosted by acquisitions, growth in Premium Lifestyle and Wholesale & Licensing divisions and the full period of revenue contribution from House of Fraser versus 11 weeks last year.
In addition, Sports Direct said first-half results include the GBP84.9 million gain from the sale and leaseback of the Shirebrook distribution centre in July.
Excluding acquisitions, and on a currency neutral basis, the company's revenue was down 6.4% due to the company's so-called Elevation business strategy.
During the period, Sports Direct said it has experienced "some challenging events", which included a tax inquiry in Belgium and the continued integration of a "broken" House of Fraser business.
No dividend was paid during the half-year period and the Shirebrook-headquartered company said it has decided not to declare a payout for the interim period.
Looking ahead, Non-Executive Chair David Daly said: "We are hoping that the political waters will be calmer in the coming months which will allow us to move out of this period of market unpredictability. This will enable us to plan appropriately for the future which is critically important."
He added: "Despite ongoing challenges, we believe we are getting into a good place, building a solid foundation of elevation and efficiency which will lead to sustainable growth and a successful future."
The company expects its total underlying earnings before interest, taxes, depreciation, and amortization - including House of Fraser but pre IFRS 16 adjustments - to grow between 5% and 15% from the prior year's pre-House of Fraser underlying Ebitda of GBP339.4 million.
This gives a range of between GBP356.4 million to GBP390.3 million for the year ending April 26, 2020.
Sports Direct shares were trading 24% higher in London on Monday at 445.00 pence each.
By Evelina Grecenko; [email protected]
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